The Technical Trader’s view:
WEEKLYCHART
The market has the appearance of being between powerful support and resistance.
The support has been the Head and Shoulders Neckline which was coincident with the 38.2% Fibonacci retracement support.
And the resistance is clearly the band from the Prior Lows 1201-1253.
But looking closer…
This daily detail is intriguing: First, notice the two bull patterns within the trading range – a Medium-term bull wedge and then small a short-term bull wedge – both have completed and will have a continuing bull influence on the market.
Note the detail: the recent bull run has driven up through the 61.8% Fibonacci….
But more important still note the potential Neckline above the market currently at 1125 and falling slowly…
Were the market to get up above that level there would be a massive surge in buying, perhaps driving the market up as far as the top of the trading range.
Mark Sturdy
John Lewis
Seven Days Ahead
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